Energy Efficiency in Developing Nations

The demand for energy system in the developing countries is rising at a rapid rate and this is one of the major concerns for the whole World. In order to stimulate economic growth, developing countries have been promoting their industrial sector. With the emergence of new companies, energy consumption as well as pollution has been rising. In these situations, promoting energy efficiency in developing countries has become a major challenge for international organizations. Several survey reports show that nearly 50% of the total energy consumption in developing countries, such as the Latin America is by the industrial sector of these countries. The primary energy consumption rate in the developing countries has been increasing at an average of 5% every year whereas in the developed countries, this rate is between 0.5% -0.6%. The energy intensiveness of the industrial sector is very high as there are a number of activities related to this sector that ranges from extracting resources to producing finished goods. This diverse nature of work is the main problem in reducing energy consumption in this sector. More than this, the dilemma faced by the national governments of these developing countries is that if they reduce energy consumption, the growth of the industrial sector will slow and reduce the rate of economic development and they do not afford alternative sources of energy use such as solar energy, wind energy, nuclear energy and its high expensive to them which must be supported financially. That is not a politically acceptable option in many if not most developing countries.

Another important factor related to energy consumption and conservation in developing countries is of population growth. The population growths are very high in a number of South–American countries and with this population growth, demand of new houses, office buildings, electrical home appliances etc. will also rise. With these developments energy consumption is also expected to rise rapidly.

In such situations, increasing energy efficiency is most important factor. A large number of international organizations like united nation organizations, World Bank and other alliances want to save energy. These organizations, along with national government and national organizations of developing countries are involving in creating various strategies to promote energy efficiency in developing nations. These organizations are also arranging the necessary finances for the purposes through several grants and private investments. At the same time ESCOs (Energy Service Companies) are also playing a major role in reducing energy consumption in developing countries.